Protecting Your Investment: Car Dealership Actions During Hail Storms and Beyond
During hail storms, car dealerships take several proactive measures to protect their inventory and minimize damage. This article will explore the steps dealerships take and provide insight into the financial and customer-related aspects of hail damage.
Proactive Measures by Dealerships
1. Moving Vehicles: One of the primary steps taken is moving vehicles into covered areas, such as garages or service bays. Dealerships may also relocate vehicles to nearby indoor facilities if they are not already enclosed. This ensures that they are out of the direct path of falling hail, thus minimizing potential damage.
2. Covering Cars: If relocating vehicles is not an option, dealerships often use tarps, blankets, or specialized hail covers to protect cars parked outside. These measures can significantly reduce the amount of damage sustained by a vehicle.
3. Monitoring Forecasts: Dealerships closely monitor weather forecasts to prepare for incoming storms. This allows them to take preventive actions, such as moving or covering vehicles, to protect the inventory as much as possible.
Dealership Insurance and Financial Management
4. Insurance Review: Dealerships often review their insurance policies to ensure they are adequately covered for hail damage. Understanding the claims process is crucial in minimizing financial losses. This involves understanding the terms of the insurance contract, the claims procedure, and the extent of coverage provided.
5. Post-Storm Assessment: After the storm, dealerships assess the damage to their inventory. This involves evaluating the extent of the damage for each vehicle. They may work with insurance adjusters to file claims for any vehicles that were damaged. This process can be lengthy and may involve several steps, including documentation, appraisals, and repair estimates.
Dealership Repair Services and Customer Communication
6. Repair Services: Some dealerships offer in-house repair services for hail-damaged vehicles. They may also partner with body shops to provide comprehensive repair solutions. These services are important for maintaining customer trust and ensuring that damaged vehicles are restored to a safe and presentable condition.
7. Communication with Customers: Dealerships may communicate with customers who have purchased vehicles or are in the process of purchasing to provide updates on inventory status and any potential delays in delivery. This transparency helps maintain customer confidence and satisfaction.
Paintless Dent Repair and Hail Damage Disclosure
The use of paintless dent repair is a technique used by some dealerships to minimize visible damage on vehicles. However, it is crucial to disclose to the customer that the car has been damaged by hail. If a dealership chooses not to disclose the damage and uses paintless dent repair, it may lead to ethical concerns and impact the value of the car.
When a vehicle on the lot is damaged by hail, the insurance policy typically covers the losses. If a car is considered totalled, the dealership may sell it as is or in a damaged state. There are buyers who are willing to purchase such vehicles at significantly lower prices. The car's title is also affected by the damage, which can have a lasting impact on the vehicle's value. These buyers might be individuals looking for a car with unique features or those looking to make repairs out of pocket.
For example, a customer in Connecticut searching for a 4-door Cadillac DTS, either new or used, found a year-old DTS with superior options in Oklahoma City, Oklahoma. The customer called the dealership and gathered the necessary information, showing interest. After seeing the car online and the price offered, the customer flew to Oklahoma City to inspect the vehicle. The car had extensive exterior damage, which included a lane departure warning sensor near the rearview mirror. Despite the damage, the car's condition met the customer's needs, and the transaction was finalized.
Conclusion
Protecting a vehicle investment during hail storms and managing hail damage effectively requires proactive measures, insurance review, and transparent communication with customers. By taking these steps, dealerships can minimize financial losses and maintain customer trust and satisfaction.